The Study Of Financial Management Model In National Defensive Scientific Research Institute

whether a scientific research institute can be developed in stable and positive way is an essential issue to the development of China national defensive science and technology and national security. From the current status, most of these institutes are facing the conversion from undertaking assignment by government to multi-industry and comprehensive development in respects of research, manufacturing, distribution and service. As a consequence, capital source changes from government funds to financing via various channels, and financial management change from simple expenditure control to fundraising, cost control and incoming control. Although these institutes carry out some reforms in certain confines and stage, these reforms are considered to carry out under the planned economy system. Therefore, the management system and organization are kept untouched in fundamental. As a core element of management, financial management inevitably reflects most of the inconsistency. We are expected to create a set of reasonable financial management model to solve the existing problem and meet the requirements of the scientific research system reform and market operation. Therefore the development of the scientific research institute is to be on the way.With the adoption of methods of criterion research, this article studied the constitution of existing financial management model and operation, and analyzed the actual execution of financial management of the scientific research institute. We find out a wieldy financial management model by taking into account of model selection, responsibility distribution, organization and performance assessment.In the aspect of financial management model selection, the author compared the characteristics of the scientific research institute with those of corporations, and found out that the scientific institute has two distinct features which are normally possessed by the latter. Therefore, the author concluded that the feasibility of importing corporate finance management model into finance management system of scientific institutes. However, since the scientific research institutes have multi-leveled subsidiary system with different target has been formed, the author recommended the mixed financial management model with emphasis on relatively power centralization to the scientific research institute at the current stage. Hence the resource can be well-harnessed at flexible, meanwhile the financial source can be well distributed under the monitoring of headquarter, so that the national mission is to be ensured fulfilled and the strength of scientific institute is to be upgraded rapidly.As for the model operation assurance, the author addressed that the first important issue is to define the financial management target. Because of business characteristic and operation features of scientific research institute, the value optimization of institute becomes the final target.Second, the author proposed to establish equity and liability distribution system at different levels, thus financial decision, supervision, and financial affairs execution can be made level by level. Nevertheless, moderate power centralization is required to be maintained in order to control the resource and risk.The author suggested to set up financial affairs departments for individual level. Financial affairs departments will facilitate financial affairs and accountant management. Therefore, the independence of accounting work will not to be impacted, and meanwhile it will be liable to ascertain scope of work of the financial management. In order to keep close attention on the key elements, the institutes are recommended to build up financial transaction administrative office in order to centralize funds management, enhance the control of headquarter and efficiency of resource utilization. Consequently, efficient funds allocation internally can be achieved, and financial expense can be saved by reducing external transaction.The article studies the regulation, system and performance assessment as well. The financial regulations include financial management organization, financial work, budget control, performance and target assessment, accounting information disclosure, and monitoring. Financial regulation is an operation standard and assurance of the finance management model. In order to realize the master target and to put individual subsidiary under efficient control, an index appraisal system is required to be prepared. Because the authorization cost only can be reduced when operator's return is linked with his performance, a proper performance assessment is necessary to operate. On the other hand, the reasonable appraisal system is also required for individual subsidiaries. The purpose of assessment is to judge the capability of assurance to accomplish national mission, gain acquisition of capital, and detect the weakness of finance control. The author hereby proposed that the performance appraisal with quantitative and qualitative index should be established for the scientific institutes.At the last part, the author analyzed the aforesaid mixed financial management model by giving an example of S institute. The author set forth how to put into the research into practice to solve the real problems.Through research and analysis on the financial management of both scientific research institute and corporate, the author summarized some important factors when building finance management model of the scientific institutes, and drawed conclusion as belowFinancial management model of the scientific research institutes can be improved with mature theory and practice of corporate financial management system, because the scientific research institutes possesse typical characteristic of corporates.In order to solve financial problem of the institute, the first task is to choose suitable financial management model. The author recommended the mixed finance management model with emphasis on relatively centralization, by taking account into the actual condition of the institutes, i.e. multi- level of management and large range of business.After selecting financial management model, an assurance system including responsibility, financial management organization, regulation, budget control and performance assessment must be well equipped. Hence the expectation of financial management system can be ensured...